Governing for quality aged care – A director’s guide

The AICD’s Governing for quality aged care – A director’s guide (the Guide) provides practical guidance to Australian directors to meet new governance obligations in the aged care sector.

The Guide is an up-to-date consolidation of two earlier AICD tools - Board governance in the aged care sector and Clinical governance for boards in the aged care sector. Whilst the Guide is aimed to assist aged care directors and their boards, it also provides useful guidance for directors in other care sectors that provide programs and services for clients.

The recent legislative changes in response to the Royal Commission into Aged Care Quality and Safety have ushered in a new era for directors in aged care. These changes have significant implications for boards, requiring more than incremental improvement. Rather, we suggest governance for quality aged care requires a reset.

To support directors in the aged care sector meeting their new governance obligations, the guide covers:

• Directors’ new governance obligations under recent aged care reforms
• Practical guidance to equip boards with suggested steps to navigate these challenges  
• Key questions for boards to be asking themselves and management teams
  

Legislated governance changes which apply from 1 December 2023 require that:

• a majority of members of the board are independent non-executive members;
• at least one member of the board has experience in providing clinical care;
• a quality care advisory body be established to provide ongoing feedback and advice (including a written report every six months) on the quality of the aged care service;
• the provider annually offers to set up a consumer advisory body;
• older Australians are prioritised in the organisation’s constitution of a wholly-owned subsidiary company, over the holding company;
• the board ensures staff have the appropriate qualifications, skills and experience to provide aged care services.